Due to the COVID-19 pandemic and a decrease in bookings, Cerner reported $147 million in net earnings for the first quarter of 2020, down 11 percent from the same period the previous year.
The Kansas City, Mo.-based EHR vendor attributed the bookings decrease to the onset of the pandemic and subsequent travel restrictions in mid-March. CEO Brent Shafer said in an April 28 news release the company expects the largest financial impact to occur in the second quarter of 2020.
Six things to know about Cerner's financial performance for the first quarter of 2020, which ended March 31:
1. Cerner posted $147 million in net earnings for the first quarter of 2020, down 11.45 percent from $166 million during the same time last year.
2. The company reported $1.41 billion in revenue for the first quarter, up 2 percent compared to $1.39 billion in the first quarter of 2019.
3. Cerner posted $1.09 billion in bookings for the first quarter, which was at the low end of its expectations.
4. Professional services was the biggest revenue driver for Cerner during the first quarter, bringing in $511.3 million. Managed services contributed $309.4 million, followed by support and maintenance services at $273.7 million.
5. The company expects second-quarter 2020 revenue between $1.34 billion and $1.39 billion.
6. For the full year, Cerner anticipates revenue between $5.55 billion and $5.7 billion, down from a prior estimation of $5.73 billion and $5.98 billion.